WA Nationals withdraw support for franchise bill

The West Australian National Party has extended its enigmatic relationship with the state’s small business community, dropping support for laws to strengthen the rights of individual franchise owners.

A spokesman for Nationals leader
Brendon Grylls
said the party, which holds the balance of power in Parliament, “would not support the bill" that was due to be debated last night, despite previously backing it, along with Labor.

The private member’s bill was introduced by Liberal backbencher Peter Abetz without the support of most of his Liberal colleagues.

It is now set to fail.

The WA Nationals have often championed their support for small business. They opposed attempts by the state Liberal government to extend shop opening hours, saying it would simply entrench the dominance of the big retail giants.

The Nationals are said to favour strengthening the powers of WA’s small business commissioner to help franchise owners in their battles with big franchisees, although this option was rejected by Mr Abetz yesterday because he said it would be too hard to rewrite the commissioner’s role.

Mr Abetz’s bill would have strengthened the hand of existing store owners by specifying that renegotiation of franchise agreements be in their favour and that ­parties must negotiate in good faith.

He said he was alerted to the issue by a fight between fast food mogul
Jack Cowin
and the owner of the KFC brand, but added he had uncovered numerous examples of rogue franchisers, although this is disputed by the fast food ­industry. It says the law would set WA apart and stop franchisers getting rid of poor operators.